Changing contribution amounts

If you are employed you can choose whether to contribute 2%, 4% or 8% of your pre-tax salary or wages. Find out below how to change your contribution rate.

If you don't select a contribution rate when you first join KiwiSaver your contributions will be set at 2% of your pre-tax salary or wages.

The Government announced in the 2011 Budget that the minimum employee contribution rate and the default contribution rate will increase from 2% to 3% of gross salary or wages with effect from 1 April 2013.

You can choose to change your contribution rate to any of the options available by requesting your employer to change your contribution amount. You can do this whenever you like as long as you do not change your contribution level more frequently than every three months (unless your employer agrees to an exception to the three month minimum).

Contributing just $1,042.85 a year will mean you receive the maximum member tax credit from the Government of $521.43 each year (if you are eligible). If you earn less than $52,000 and contribute 2% then your contributions will be less than $1,042.86. Therefore you will not receive the maximum member tax credits, unless you make extra contributions.

To stop making contributions altogether, you must apply for a contributions holiday.

If you are self-employed find information on changing contribution amounts here.